I took an hourly rate at my current job because I was still relatively junior and I didn't really understand the difference between billable time and administrative time. I also didn't find out until too late that we bill down to the minute. My boss actively and aggressively tries to minimize time logged to only 100% billable/productive time, to the point where after I factor out communication and various office tasks I can never really log more than around 4 hours in a day unless I'm working an insane amount. I once woke up at 7am and logged 9 hours of work in a day. I only stopped for meals and I went to bed that night shortly before midnight.
Now I'm completely burnt out after 7 months, and my productivity has dropped drastically over the past few weeks to the point where I'm either calling in sick or actively avoiding my superiors all day. I'm agonizing over whether I should quit first or if I should try to hold on until I find another job (I would've fired me by now). I don't have very much money saved and I have student loans. Plus, my boss has basically destroyed my self confidence. I'll never take hourly pay for this type of work (outside of freelance) again.

I quit for the sake of my mental health, to preserve potentially good references, and because I wasn't making any money. The sense of relief is REAL. Even though my next couple weeks to a month may be potentially perilous, I'm so happy to be moving on to better opportunities. If anyone is looking for someone, let me know!

I've been in almost the same situation except it was my first internship & it was so bad to the point where they stopped paying me altogether :( The mental stress and lack of self confidence is not really worth anything. After the internship I felt like I won't find a job anywhere any more, but after working at MUCH better places the difference was JUST SO BIG. It was like basically leaving a abusive relationship and if you have the financial means to leave, I would definitely encourage you to. Sorry that this is happening to you and I ensure you that it definitely gets better!

I feel for you. What you have described is an awful situation and your company is being completely unrealistic if they want you to not log time spent on email, phone calls, and other tasks that are essential to the job. Tough situations require tough decisions, but it really seems like you are past the point of trying to fix your situation at your current job. I suggest finding something else -- especially since you are saying your boss has destroyed all of your confidence. That is the worst part of your story.